Oklahoma Supports for Early Childhood Health & Education (ages 0-5)

A Fiscal Map

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Prepared by:1

Major Programs Serving Oklahoma Children Ages 0-5

Early Education Health Care Basic Needs & Economic Security

Parenting Education, Child Care, & Family

Support

Head Start/Early Head Start SoonerCare WIC Child Care Subsidies

State Pilot Program SoonerStart TANF Cash Assistance Children First

Early Childhood Special Education

Mental Health and Substance Abuse Services* SNAP (Food Stamps) Start Right (Child Abuse

Prevention)

Pre-Kindergarten

Parents as Teachers

Rural Infant Stimulation Environment Program

Partnership for School Readiness

TPS Early Childhood Development ARRA Grant

2*Awaiting funding data.

Funding for children ages 0-5 by major goals, FY 2010

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Estimated Total Support for Early Childhood Health & Education in FY 2010:

$1.500 Billion

$270.7M

18%

$446.6M

30%

$635.7M

43%

$131.0M9%

Basic Needs & Economic SecurityEarly EducationHealth CareParenting Education, Child Care, & Family Support

Funding Trends: Major Programs Supporting Children Ages 0-5

FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 100

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

Other

TANF Cash Assistance

Children First

State Pilot Program

SoonerStart

WIC

Head Start/Early Head Start

Childcare Subsidies

SNAP

Pre-Kindergarten

SoonerCare

4

Funding Trends: Major Programs Supporting Children Ages 0-5

5

FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 100

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

SoonerCare Pre-Kindergarten SNAP Childcare Subsidies

Head Start/Early Head Start WIC SoonerStart State Pilot Program

Children First TANF Cash Assistance Other

FY 2010 Snapshot:Federal, State, Local, & Private Sources

Estimated Total Support for Early Childhood Health & Education in FY 2010:

$1.500 Billion

State, 384,551,554,

26%

Federal, 991,119,219,

66%

Local; 73353243.75; 5%Private; 48183481; 3%

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FY 2010 SnapshotMajor Funding Sources: Federal & State

• Federal: $991.1 Million, 66 percent

– Medicaid: $468,144,627

– SNAP Benefits: $171,003,396

– Head Start/Early Head Start: $110,588,469

– TANF/CCDF: $95,885,299

– WIC Food & Nutrition Service Grants: $71,250,712

– TPS Early Childhood Development ARRA grant: $15,000,000

• State: $384.6 Million, 26 percent

– Department of Education: $195,279,946

– OHCA SoonerCare Matching Funds: $143,925,147

– OK DHS TANF/CCDF Matching Funds: $29,931,915

– Health Department: $12,962,013

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FY 2010 SnapshotMajor Funding Sources: Local & Private

• Local: $73.4 Million, 5 percent

– Pre-Kindergarten Local Support: $73,353,244

• Private: $48.3 Million, 3 percent

– Nestle Infant Formula Rebates for WIC: $20,703,620

– George Kaiser Family Foundation: $16,277,989

– Inasmuch Foundation: $2,792,500

– Potts Family Foundation: $118,000

Funding Trends:Federal, State, Local, & Private Sources

Overall funding since 2004 is comprised of about 1/4th state dollars, 2/3rds

federal dollars, and 1/10th local and private dollars. Between ‘04 and ‘08,

state funding rose from 25 percent to 29 percent of the total. Since 2008,

federal spending has increased from 59 percent to 66 percent.

Fiscal Year 2004 2005 2006 2007 2008 2009 2010

State 229,202,073 254,547,700 295,489,370 330,836,427 368,917,709 365,958,733 384,551,554

Federal 600,558,638 623,119,185 664,549,618 700,834,329 750,448,906 847,114,720 991,119,219

Local 53,402,443 64,751,891 70,565,067 76,705,358 89,641,404 101,897,546 73,353,244

Private 16,763,618 24,145,856 25,260,999 50,656,061 56,162,117 59,843,644 48,301,481

All Funding 899,926,772 966,564,632 1,055,865,054 1,159,032,175 1,267,444,778 1,376,853,819 1,500,495,498 9

Spending on Young Children as a Percentage of All Spending, FY 2009

10%

90%

6%

94%

FY 2009 spending on education for children ages 0-5 made up about 1 out of every 20 dollars of all state spending on education.

In FY 2009, spending on children ages 0-5 made up about 1 out of every 10

dollars spent by the state.

Spending on children ages 0-5:

$1.38 billion

Total state direct expenditures:

$13.65 billion

Spending on education for children ages 0-5:

$0.43 billion

Total state education expenditures (including postsecondary):

$7.39 billion 10

Total state expenditures numbers from 2009 Census Bureau state government finances data.

Major Programs: Head Start/Early Head Start

Head Start and Early Head Start provide comprehensive child development

services to economically disadvantaged children and families, with a special focus on helping preschoolers develop the early

reading and math skills they need to be successful in school. In Oklahoma, Head

Start programs are administered by Community Action agencies, private nonprofit agencies, American Indian

Tribes, and a school district. The programs are funded primarily with federal grants ,

along with state funds through the Oklahoma Department of Commerce.

Fiscal Year FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10

Region 6 Federal Funding $78.3M $81.3M $80.1M $80.3M $81.3M $83.7M $83.8M

Region 6 State Funding N/A N/A $2.9M $2.9M $2.9M $2.7M $2.5M

Region 11 (American Indian) $20.6M $20.6M $20.4M $20.7M $20.9M $23.1M $24.3M

Total Enrollment N/A N/A 19,651 19,819 19,771 19,745 20,649

FY '06 FY '07 FY '08 FY '09 FY '1017,500

18,000

18,500

19,000

19,500

20,000

20,500

21,000

Head Start/Early Head Start Enrollment

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Major Programs: Pre-Kindergarten12

Fiscal Year

Average Daily Attendance

Half-Day

Average Daily Attendance

Full-Day

Average Daily Attendance

TotalFunding

2010 14,491 19,680 34,621 $293.4 M

2009 14,850 18,290 33,140 $283.0 M

2008 15,666 16,420 32,086 $263.7 M

2007 16,260 15,236 31,496 $232.4 M

2006 16,672 14,122 30,794 $213.8 M

2005 16,479 13,206 29,685 $196.2 M

2004 15,453 10,843 26,296 $161.8 M

Since 2003, Oklahoma has ranked 1st in the nation for the percentage

of four-year-olds enrolled in publicly-funded pre-k. The program is supported with a combination of federal, state, and local funds and

administered by local school districts and the state Department of Education. All pre-k teachers are

required to hold a bachelor's degree and early childhood certification. 2002 2003 2004 2005 2006 2007 2008 2009 2010

56% 59%64%

68% 70% 68% 71% 71% 71%

Percentage of Oklahoma four-year-olds enrolled in a public pre-k program

Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10175,000

185,000

195,000

205,000

215,000

SoonerCare Enrollment, Ages 0-5Unduplicated count as of June 30 each

year

Major Programs: SoonerCare

Date Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10

Children Age 0-5 Enrolled 184,916 188,814 193,023 200,641 204,681 212,736

Percent of Total SoonerCare population 26.5% 25.4% 25.3% 25.2% 24.8% 24.0%

Funding over fiscal year $353.5 M $412.7 M $463.6 M $509.5 M $553.9 M $612.1 M

SoonerCare, Oklahoma's Medicaid program, provides comprehensive health care

coverage to eligible low-income populations. Children in

Oklahoma are eligible for SoonerCare up to 185 percent

of the federal poverty level. The program serves

approximately 2/3rds of all Oklahoma children ages 0-5.

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Major Programs: WICThe Women, Infants, and Children federal grant funds supplemental

food, health care referrals, and nutrition education for low-income mothers and children up to age five who are found to be at nutritional risk. The program is funded by the

federal government and private sources (Nestle Infant Formula

Rebates ) and is operated through the State Health Department and

tribal governmentsFY '01 FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10

80,000

85,000

90,000

95,000

100,000

105,000

110,000

Average Monthly WIC Caseload

Federal Fiscal Year Total Funding Average Monthly CaseloadFY '01 $63,360,830 87,467FY '02 $65,885,891 90,418FY '03 $66,556,897 91,389FY '04 $66,962,917 92,618FY '05 $72,795,881 94,724FY '06 $75,711,011 94,288FY '07 $78,476,266 94,741FY '08 $91,618,418 97,315FY '09 $96,534,512 102,793FY '10 $91,954,332 105,104

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Major Programs: TANF Cash AssistanceTANF (Temporary Assistance for Needy

Families) provides time-limited cash assistance to low-income families with

minor children who are deprived of parental support because of the absence, death, incapacity, or unemployment of at

least one parent. More than half of Oklahoma TANF cases are “child-only cases” in which no adult household

member receives assistance. Since 1996, TANF is operated as a federal block grant with a state matching requirement. Less than 25 percent of TANF funds are spent on cash assistance; most is spent on child

care and work support programs.

Fiscal Year FY ’02 FY ‘03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10

Average Monthly Enrollment, Ages 0-5 9,915 10,473 9,992 9,171 7,816 6,856 6,108 6,070 7,235

Annual Total Expenditures, Ages 0-5 $11.0M $11.3M $10.8M $9.8M $8.3M $7.3M $6.3M $6.4M $7.8M

Monthly Average Payment Per Case (all cases) $213 $220 $220 $214 $207 $216 $186 $202 $240

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

TANF Cash Assistance for Children 0-5

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Major Programs: SNAP (Food Stamps)The Supplemental Nutrition

Assistance Program (formerly Food Stamps) provides a

monthly benefit for eligible low-income households to purchase

groceries. The federal government pays the full cost of SNAP benefits and splits the cost

of administering the program with states.

Fiscal Year FY ’02 FY ‘03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10

Annual Total Expenditures, Ages 0-5 $58.1 M $76.9 M $85.5 M $93.1 M $98.4 M $99.3 M $102.8 M $125.0 M $171.0 M

Average Monthly Enrollment, ALL AGES 298,204 367,993 406,004 421,442 433,372 423,084 415,397 445,364 559,626

Monthly Average Benefit, All Cases $75 $78 $80 $85 $89 $91 $97 $110 $128

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $40,000,000

$80,000,000

$120,000,000

$160,000,000

$200,000,000

Supplemental Nutrition Assistance Program, Annual Payments, Ages 0-5

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Major Programs: Child Care Subsidies

Fiscal Year FY ’02 FY ‘03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10

Annual Total Expenditures, Ages 0-5 $89.8M $104.4M $110.6M $99.2M $100.0M $98.2M $98.8M $111.5M $118.1M

Unduplicated Annual Enrollment, Ages 0-5 62,035 66,232 61,905 58,912 56,875 53,812 52,050 50,702 51,772

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $70,000,000

$80,000,000

$90,000,000

$100,000,000

$110,000,000

$120,000,000

$130,000,000

Child Care Subsidy Expenditures, Children Aged 0-5, SFY 2002-2011The Child Care Subsidy Program assists

qualifying families by paying all or part of their child care costs in a licensed

home or center. To be eligible, families must meet income requirements and

the adults in the home must be engaged in qualifying activities such as work or

school. The Child Care Subsidy Program is funded through a variety of federal block grants, some of which require

state matching funds.

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Additional Funding Opportunities• Race to the Top – Early Learning Challenge

– $500 million state-level grant competition; Oklahoma is eligible for up to $60 million.

– Gives priority to states that establish public-private partnerships.

• Affordable Care Act – Maternal, Infant and Early Childhood Home Visiting Program– Funds for nurses, social workers, or other professionals to meet with at-

risk families in their homes and connect them with health care, early education, parenting skills, child abuse prevention, and nutrition assistance

– Initial funding for Oklahoma is $1,920,105– First year’s funding focused on Kay and Garfield Counties, which were

ranked highest in needs assessment

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Federal Budget ChallengesEfforts in Congress to address federal budget deficits through spending cuts are likely to have a significant – if uncertain – impact on funding for young children.

• Budget Control Act of 20111. Establishes caps on discretionary spending though 2021 to

reduce federal deficits by $917 billion;2. Creates a Congressional Joint Select Committee on Deficit

Reduction to propose at least $1.2 trillion in deficit reduction over 10 years;

3. Implements automatic procedures (‘sequestration’) to reduce spending by up to $1.2 trillion if select committee does not achieve savings

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Federal Budget Challenges• Budget Control Act of 2011

1. Establishes caps on discretionary spending though 2021 to reduce federal deficits by $917 billion;• FY ‘12 spending cuts are modest (-$7 billion overall; -$2 billion non-security);• For FY ‘13 – FY ‘20, spending allowed to increase but

by less than the CBO baseline projections (+0.4% in FY ‘13, +1.8% - 2.2% FY ‘14 – FY ’21)

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Federal Budget Challenges• Budget Control Act of 2011

2. Creates a Congressional Joint Select Committee on Deficit Reduction to propose at least $1.2 trillion in deficit reduction over 10 years;

• Committee has until November 2011 to make recommendations, Congress has until December 2011 to approve;

• Recommendations can include any combination of spending cuts to discretionary or mandatory programs, as well as revenue changes.

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Federal Budget Challenges• Budget Control Act of 2011

3. If select committee does not achieve savings, the Act implements automatic procedures (‘sequestration’) to reduce spending by up to $1.2 trillion over 10 years

• Cuts on top of discretionary spending caps;• Cut begin in 2013 and would be divided equally between defense and

non-defense spending - $110 billion per year;• Exempted programs include: child nutrition, SNAP (food stamps), child

care entitlement to states, TANF, Medicaid and CHIP, vaccines for children, Social Security, SSI, EITC;

• Non-exempt programs include: Title I; Special Education state grants (IDEA-Part B), Head Start, child welfare services, CSBG, CCDBG (discretionary), SSBG;– Medicare payments to providers would be cut 2 percent.– Funding for community and migrant health centers and for Indian health services

and facilities cannot be cut more than 2 percent

• Center on Budget and Policy Priorities: Automatic cuts would represent approximately a 9 percent annual cut in affected non-defense programs

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About Us and Contact InformationThis report was prepared for Smart Start Oklahoma and the Oklahoma Partnership for School Readiness by the Oklahoma Policy Institute.

Launched in early 2008, Oklahoma Policy Institute (OK Policy) provides timely and credible information, analysis and ideas on policy issues affecting Oklahoma. Our core commitments are to the adequate, fair and fiscally responsible funding of public services, and to an economy that provides shared prosperity through increased economic opportunity and financial security for all.

We welcome your feedback. Send questions or comments to:

Gene PerryPolicy Analyst, Oklahoma Policy Institute(918) 794-3944gperry@okpolicy.org

David BlattDirector, Oklahoma Policy Institute(918) 794-3944dblatt@okpolicy.org